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In references to how a deficit will hurt a domestic auto maker, is because this means that there will be fewer investment opportunities in the country. This is because that more products are being brought into the country, than they are being sent out of the country. A surplus in the united states will affect a domestic auto maker will attract investment into the auotmotive industry. It will increase export capabilities, because there will be a lot more funds circulating in the economy that could be used for developing industries. In the case of debt a domestic auto maker will be a lower demand on the domestic market and the auto producers will lose market for the cars, as well as less money to spending on the acquisition of new vehicles making in the United States.

A deficit has the affect on an Italian clothing company because this will lead the market into being flooded by foreign products, because of the rate at which the country is exporting is not at equals with the exports. A surplus has the affect on the Italian company by the fact that people have more spending power because there is extra revenue in the economy, this leads to more importation from the clothing company. A debt will affect a Italian clothing company because this will lead to the cutting down of imports, this is because many business partners will shy away from those whoes credit worthiness is suspected. The would lose money quite possibly because the debt could never be paid off, or there would never be a surplus.

References

Roos, D. (n.d.). Retrieved from http://money.howstuffworks.com/personal-finance/debt-management/debt4.htm

Warnock, F. E. (n.d.). Retrieved from http://www.cfr.org/financial-crises/dangerous-us-government-debt/p22408